At the Level of Disposable Income Where the Consumption Function

question 474

Multiple Choice

At the level of disposable income where the consumption function crosses the 45- degree line,

• A) saving is zero.
• B) saving is negative.
• C) the marginal propensity to consume is 0.50.
• D) consumption expenditure equals only autonomous consumption expenditure.

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Definitions:

Body Fluids

Liquids within the human body that transport nutrients and waste, including blood, lymph, and interstitial fluid.

Developing Fetus

The stage in human embryonic development after the embryonic stage, characterized by rapid growth and the formation of organs.

Uterus

A female reproductive organ where the development of the fetus occurs during pregnancy.

Labia Minora

The inner set of folds of the vulva, located within the labia majora, playing a role in protecting the entrances to the vagina and urethra.